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Re: AMT Information
Old 11-10-2005, 09:01 AM   #21
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Re: AMT Information

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Originally Posted by riskaverse
Be very wary of AMT calculators. I used one to assist in the sale of a large amount of stock. I mapped out the sale split across 5 years and every iteration between. The results showed very little differences and were very wrong . . . which I found out in early April after selling the entire position the previous year. Online calculators are worth exactly what you pay for them and sometimes will cost you more than you would ever pay knowingly.
And the real drag with this is that when you figure out estimated taxes, you are supposed to take AMT into account.

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Re: AMT Information
Old 11-11-2005, 08:24 AM   #22
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Re: AMT Information

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Originally Posted by Martha
And the real drag with this is that when you figure out estimated taxes, you are supposed to take AMT into account.
To avoid federal underpayment penalties all you have to do is pay at least as much in the current year as your tax liability in the prior year. If your joint income is over $150,000 you have to pay 110% of the prior year's tax liability to be "penalty proof".
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Re: AMT Information
Old 11-11-2005, 08:36 AM   #23
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Re: AMT Information

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Originally Posted by . . . Yrs to Go
To avoid federal underpayment penalties all you have to do is pay at least as much in the current year as your tax liability in the prior year. If your joint income is over $150,000 you have to pay 110% of the prior year's tax liability to be "penalty proof".
Yes. That worked great for me as long as income kept going up. This year income is down considerably. So I struggled with figuring out what was enough to hit at least 90% of what will be due this year. Probably not a frequent problem but can occur as people leave their jobs and go into retirement and can occur if you have big capital gains one year and not the next.
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